opportunity. remember samsung is getting ready for its brand new launch of its new samsung galaxy s4. apple is actually bringing the launch of next iphone 5s. so, the sooner they get it out the better. >> reporter: once out, they will be available on all major u.s. carriers, and it looks like the subsidized price will range from $149 to $199. still, will people beyond diehard blackberry fans actually buy the phones? >> start with suzanne's question i was a long time blackberry user. about a year ago, i finally switched. why should i switch back? >> you know the famous home button on the bottom of the device, you don't need this anymore. you don't go in and out of applications. you have it all at your fingertips at the same time. and you can take action on it without opening any other applications. >> reporter: but, if you're worried that blackberry isn't hip enough for you, the company had one more surprise: a new addition to its payroll. our new global creative director, ms. alicia keys. >> they did a very nice job. they brought the product out in a successful manner. now the issue

time i don't know. but now android is samsung there's one guy half of all the units in north america. samsung. >> one company, a south korea company is one half of all the android operating systems in america? >> the same size as apple on a unit basis so if you're an applications developer you look at apple as more attractive because people pay a lot of money for xwraps and not so much on android. part is because there aren't as many apps and they don't work as well because it's harder to make one app work across everything. now that samsung is big i think he developed for samsung only which means google is going to lose control of their own operating system. they've already lost control of the part done by amazon so i would have -- the thing that's so amazing to me is that the big companies have huge opportunities now. microsoft owns skype, the telecommunications, the most important telecom system in the emerging world they have 400 million active users which is more than e number users of windows these days. >> rose: 400 million -- >> like over a hundred million who pay them to use

, particularly samsung with its popular galaxy smartphone. finally, today there were reports apple dramatically cut orders for iphone 5 components, due to weak demand. to be sure, apple has not confirmed soft sales with hard numbers. but, experts it would not surprise them if consumers were sour on iphone 5. >> it may be significant, we just came through the consumer electronics show and virtually all of the high profile phones that were introduced there had very large screens. some manufacturers like samsung have done very well with screens that are five inches or more in size. the iphone 5 is a four inch screen. >> reporter: apple is still far more profitable than any other consumers electronics firm in the world. but, analyst's celestial expectations have led to a crushing fall for apple shares. since hitting a high of $705 in september, the stock has lost nearly 30%. the selloff has trigged a big debate on wall street. are the shares cheap enough to buy, or is the market darling done? apple bulls argue the gadget maker has a p.e. of just 11. apple bears say the company's days a

, blackberry and iphone. now samsung increasingly is leading. and you c lose whole industries that way. other industries: the batteries in cars, the manufacturing of the cells. that's something that's coming to be dominated by the asians. hybrid vehicles and so forth. there's a reason those things didn't happen first in the united states. >> tom: american innovation and competition around the world. peter morici with us, he's with the university of maryland. thank you professor. >> take care. >> susie: selling the holidays to the world. mike hegedus found a company that's thriving despite intense competition from outside the united states, and also making its signature products right here in america. for the barrango corporation, every day is christmas. >> reporter: you wouldn't know it, but what you're watching is american ingenuity on display for the whole world, a blueprint to recovery for u.s. manufacturing. actually, it's only in guatemala city, but it was conceived, designed and made in america. the world's largest christmas tree-- 8,300 branches, over 1.5 million l.e.d. ligh

resolution of conventional high definition images. south korea's samsung electronics is the world's largest tv maker. people there have unveiled 85-inch and even 110-inch models. their tvs provide smooth streaming of online videos and voice-operated channel selection. sony has been selling 4k tvs since last year. the japanese electronics maker is the first to showcase a model with a 56-inch organic light-emitting diode screen. japanese electronics makers have been trying to launch 4k tvs ahead of their competitors. they want to turn around their struggling tv businesses. more headlines for you in business next hour. here's a check on markets. ♪ ♪ ♪ >>> the pple a bing trumpeted their 787 dreamliner saying travelers would fly into the future. but some are having trouble flying at all. a japan airlines plane on a runway in boston started leaking fuel just a day after a mishap involving another dreamliner. airport officials say about 150 liters of fuel spilled out before the plane was scheduled to take off. technicians checked things out, then determined everything was safe. the

people talk about google, apple, facebook, amazon. >> samsung. >> rose: samsung is coming on strong. they're the star of place where's you used to make big speeches. >> none of them understand software that deals complex information, like microsoft does. in fact, really only of those, google is the only one that is it are movie a software company. and so the good news for mace is that the magic of the future-- visual recognition, speech recognition, letting you navigate rich amounts of information-- that is very software centric. and the needs services, your memories, that will be kept in the cloud for you. that kind of plays to microsoft's strepgz. now, we need to show people that's the case by building these wonderful new cloud services. if you want to look at what your kids did or what you did in the past, now it's so hard. you've got photos here leathers there, bills over here. it's completely disorganized. in the future, with the right privacy controls which is a tricky part of it, your whole life of where you went, going back and sharing things with others you think they would

. >> samsung came up with a very interesting 5.5 inch flexible screen that kind of makes you imagine all kinds of possibilities >> woodruff: plus mark shields and david brooks analyze the week's news. that's all ahead on tonight's newshour. >> major funding for the pbs newshour has been provided by: >> and by bnsf railway. >> support also comes from carnegie corporation of new york, a foundation created to do what andrew carnegie called "real and permanent good." celebrating 100 years of philanthropy at carnegie.org. >> and with the ongoing support of these institutions and foundations. and friends of the newshour. and... >> this program was made possible by the corporation for public broadcasting. and by contributions to your pbs station from viewers like you. thank you. >> woodruff: the future u.s. military role in afghanistan was front and center today as president obama met with afghan leader hamid karzai. they reported progress in their talks, and said the pace of the security transition will be expedited. at their first face-to-face meeting since may, the leaders announced they

with five-inch screens like samsung. because apple shares are so widely held, many investors tonight are wondering what to do with them. perhaps apple is no longer considered a growth stock. but, is it already low enough to be considered a value play? suzanne pratt, "n.b.r.," new york. >> susie: joining us now with more alysis on apple, and those microsoft earnings, collin gillis, technology analyst at b.g.c. partners. thely for apple their growth is slowing down. it is not the type of growth that wall street labels growth stock. when you see that market sell-off today it has put apple evaluation clearly into the value territory. >> susie: all right but let's just say that apple cos out with a bunch of really cool new products, maybe that ame tv we keep hearing about. would that make apple a growth stock again? >> you know, and so there's always that potential. you know, what investors need to see is what is the innovation that's going to be coming out of apple in the future. and that level of innovation isn't is in question right now. we haven't seen any new dynamic products that ha

, microsoft and samsung. and what will start with wired watches and glasses will eventually blossom into a world wide web of t-shirts, blouses and sweaters. >> it depends on how thin and light you want to make this. companies like i.b.m. are working on some flexible substrates that wl really alow f the creation of wearable electronics. clothing. >> reporter: that's not all i.b.m. is working on. futurist trevor davis says the tech giant now has software that taps into social networks and predicts what people will wear. but does this mean style-setter anna wintour will be replaced by a supercomputer? >> i don't think anna wintour is out of a job too quickly. there's always going to be room for art and some intuition here. but what we can do with our software is take the delay out of it. >> reporter: the fashion craze i.b.m. sees coming in 2013: steampunk. >> it's a retro-futuristic look. it's victorian high fashion meets industrial workwear. it's an obsession with things like brass. it's an obsession with things like cogs and gears. >> reporter: steampunk is still a bit too hip for me

demand. >> samsung electronics operates a fifth straight quarter, but sales flip. >>> and government is on track for the austerity measures as angela merkel gives up -- for election. >>> and aig just finished off paying off its massive bailout, but the company is now weighing on whether to sue the u.s. government over that very rescue. >> now 2013. >> it's been so long. how long has it been? >> months. >> better make the most of it, though. >> two days. >> yeah. two days. >> then it's onward. >> anyway, look, we're here. i still don't know what time zone and country i'm in. >> there was snow, right? >> there was. it was beautiful. >> on today's show, we hone in on samsung in seoul. i'm all frufterred because you're back. the electronic giant will expand its lead over apple this year. >> and we've got our chips in. and we'll head out to las vegas for the latest on the consumer electronics show. >> the trade deficit widens to its largest level in five years. >> and we'll get the latest from wall street on just how happy a new year bankers are likely to have. >> i hope it's not that happy.

-emitting diodes, l.g. and samsung talk about 4k televisions. give it a little time, and we'll all call it a better, sharper picture. in a thinner package, this tv is super thin with a slightly curved screen so everyone can see better. >> that's the best part when you bring in that five-degree curve. open the room up for the entire audience that's there. there's not a bad seat anywhere. >> reporter: another trend, greener tv sets. scoring higher ratings with environmentalist. >>. the whole manufacturing process from supply to they say like from trade told tracradle to cr designers consider, it the engineers consider it, and we make sure that everything that is easy to recycle, easy to take apart. >> big screens, big shows. but in the big picture, the tv-making industry is getting a little thin. we want to focus now on one gigantic global company making big inroads in the bay area. it's building new offices and hiring in silicon valley, not to mention its world-famous battle with apple. here's how samsung wants to be the next big player in the consumer electronics industry. with somewher

international, a first on fox business exclusive. also, samsung electronics, america president first on fox business, and a store in the music industry, 50 cent. and breaking news regarding boeing. they had problems yesterday, of course today's problem with the fuel leak, you can see these problems are taking a toll on shares of boeing, which are dropping, but also the news of united airlines. the same place affair took place in the japan airlines, the airline according to reuters found improperly installed wiring in electrical proponent associated with celery power unit that this is what the "wall street journal" is reporting, this is also coming from reute reuters, but the ntsb according to the "wall street journal" is reporting that the japan airlines boeing 78 787 suffered severe damage. liz claman standing by in las vegas for the latest on 50 cent and the power players. how are you doing? liz: we are doing so well, we're iweare in the south hall right . if you look around, this is the area they do a lot of audio. the big crowds everywhere, all different kinds of companies, some

apple plunging how can you invest in its smartphone rival samsung? tracy byrnes and ashley webster have the answers next on fox business. don't miss it. ♪ (train horn) vo: wherever our trains go, the economy comes to life. norfolk southern. one line, infinite possibilities. tracy: good afternoon, i'm tracy byrnes. ashley: i'm ashley webster. apple falling hard. the stock dropping nearly 12% on fears the company, well, is losing out to smartphone rival samsung. that raises the question how can you invest in samsung? we're looking for options in moments. it is not that easy. tracy: it is not. there is no adr. the odd man out months after nasdaq and i.c.e. teamed up in a failed bid to take over the new york stock exchange, nyse and i.c.e. are going it alone. bob fwri felled shares his reaction with liz claman from davos. that is ahead. ashley: a dire warning from the economy from a top advisor to president bush. ed lazear is here. he says we need to take dressic action right away. nothing happens in washington right away. tracy: unless its hundred of orders, or vacations. tracy: as

. >> 700,000 smartphones every day. not a week, not a month, every single day. that is what samsung is selling. why is the undisputed leader in the smartphones market. >> it is 12:00 noon in london, 7:00 a.m. in washington, d.c., 2:00 p.m. in the cairo, on a ridge with significance. two years from the uprising that toppled the mubarak regime, egypt democratically elected president, muhammad morsi, faces his own challenge. here is a live shot from the tahrir square, where thousands are gathered. it has been a tumultuous two years for egypt, marked by political infighting, protests, a deepening economic crisis. critics of president morsi 1 radical change to egypt's new constitution. we can cross live now to cairo to our correspondent. it is the two-year anniversary. one might think that would be cause for celebration, but it seems the mood is different where you are in tahrir square. >> yes, it is. president morsi called for today to be a day for egyptians to come together in celebration, but it is a different scene in tahrir square. let me show you friday prayers a short while ago. the numbers

looking across at samsung, competing hard with samsung and starting to adopt sam sung's policies and practices and samsung is a broadband, more of a value brand and segment. melissa: looking right now, the market share, what we've seen and it has just been a huge jump. in 2011, samsung's market share was 22% to apple's 13. if you look what happened in 2012, samsung has jumped all the way to 31%, a huge jump. another 10%. meanwhile apple just ticked up two points, to 15. seems like samsung is really eating their lunch and apple should go back to what has worked for them, instead of trying to do this other thing, right? maybe they can't? maybe they're out of ideas? their trademark was amazing innovation. is that gone with steve jobs? >> well, what steve wozniak beliefs, when steve jobs passed a lot of people that created innovation with apple left the company and, but they were there to be with jobs. so the end result, what's left isn't capable of innovating like jobs innovated. the other issue though is recognize that porsche, doesn't compete with market share with volkswagen. they're

most valuable tech econocompany worl it is second place in the smartphone world. samsung dominating. so, who has the momentum in mobile? joinings now is the ceo of at&t mobility. he's now to in las vegas for the annual consumer electronics show. ralph, great to speak with you. >> great to be out here at ces once again. >> i'm sure it's a very exciting time. i want to ask you about the smartphone wars. recently, some doubts about the momentum of the iphone 5, with deutsche bank coming out with a note earlier this week, questioning the momentum, month on month in terms of iphone 5 sales. what are you seeing on the front lines at at&t? >> well, i don't want to specifically comment about month to month. but the iphone is a big seller for us, as are many of the android devices. samsung galaxy s-3, the samsung note. and melissa, the windows phones, which are new for us, as well, the nokia lumia is doing well. apple, android and now windows 8, which is a fantastic lineup for our customers. >> in terms of the momentum since the launch date of the iphone 5, ralph, is it at the same levelle o

to get harder for many. one company currently experiencing surprising growth is samsung. it has announced record profits driven by impressive sales of smartphones. success is putting pressure on apple which lost its slot today as the most valuable company in the world. our technology correspondent reports. >> six years ago, the iphone was unveiled by steve jobs and went on to define the smartphone industry. now samsung has grabbed the lead. it is a giant conglomerate that makes everything from televisions to washing machines. it is smartphones that have transformed its fortunes and now contribute more than half the profits. their offering new smartphone users the same experience as apple for less. >> we're offering an attractive experience at an affordable price. for those who want to use facebook and e-mail, they do not need to pay the top of the range to get those services. >> apple has delivered outstanding results this week, but its shares have slid amid worries of its ability to come to something new. in the last quarter of 2012, it made over 8 billion pounds in profit and

to get harder for many. one company currently experiencing surprising growth is samsung. it has announced record profits driven by impressive sales of smartphones. success is putting pressure on apple which lost its slot today as the most valuable company in the world. our technology correspondent reports. >> six years ago, the iphone was unveiled by steve jobs and went now samsung has grabbed the lead. it is a giant conglomerate that makes everything from televisions to washing machines. it is smartphones that have transformed its fortunes and now contribute more than half the profits. their offering new smartphone users the same experience as apple for less. >> we're offering an attractive experience at an affordable price. for those who want to use facebook and e-mail, they do not need to pay the top of the range to get those services. >> apple has delivered outstanding results this week, but its shares have slid amid worries of its ability to come to something new. in the last quarter of 2012, it made over 8 billion pounds in profit and sold a record 48 million iphones. anal

problem? is samsung coming in and eating up their market share? >> i think it is about a lot of different things. samsung a few years ago was a number two, number three player. this last year it has come to dominate the smartphone face. it is number one seller. look the market share in the last quarter. apple has 14.6% market share. melissa: wow. >> down from 23% and now samsung is the number one maker and shipper of global smartphones, 31.3%. this is all in the third quarter, according to idc. on top of this, this morning, smartphone just adds a trump card onto the mix. 100 million phones of the samsung s-series of smartphones. this took samsung less than three years to get to the 100 million unit mark. it took apple four years to do it. it is not able to compete with samsung in the way, not a one-horse show anymore really. >> i still use an old iphone. i think a 4. i wonder if iphone is saturated. i'm perfectly satisfied. is 5 much more fancier. melissa: i know people go in to get one, it is cheaper. there are more samsung options. you get wooed away from the iphone when you g

, we found one company specifically targeting the bay area, samsung, building and hiring in silicon valley as we speak, and as you know, giving apple's iphone a run for its mobile money. but samsung has a much larger plan than just phones. it wants to be all over your house. >> the thing about this refrigerator is our system. >> reporter: like this refrigerator. not merely used to keep things cool. also used to keep you informed. >> our new refrigerator has a screen on it. you can use it as a baby monitor. maybe you want to look up recipes or listen to pandora while you're cooking. all that can be done. >> reporter: and while the company gave us a sneak peek into its next-generation mouse which you'll control with hand gestures, it also fired up its newest vacuum cleaner because when you think about devices communicating with wi-fi, you undoubtedly think about your vacuum cleaner, right? >> our new vacuum cleaner does have a camera on it. and you can control it from your samsung smartphone. so when someone spills the chips at my house, nobody get up. i'll just have the vacuum come o

in hong kong. >>> 2012 certainly proved to be a goodyear for south korea's samsung electronics. both sales and operating profit rose to records driven by strong sales of smartphones. samsung said sales rose 22% from the previous year to around $190 billion. operating profit was quite a jump. 86% to $27 billion. more than half of its profit came from smartphones. samsung launched many new models and posted higher sales in emerging markets like china. the strong yuan is weighing on samsung. company related losses could amount to roughly $2.8 billion. they say they will work hard to provide higher quality frouts become more competitive. that want does it for biz this week. let's check in now on the markets. >>> aviation authorities in the united states and japan are keeping an even closer contact these days. most of their discussion involve the 787 dreamliner. the boeing made plane has been grounded following a series of problems. the biggest involves the jet's batteries. nhk world bring us up to speed on the investigation. >> translator: investigators are hoping to find out why t

long. >> are you worried at all, joe that, samsung and net glassy pho -- galaxy phone is gaining ground and momentum? >> concerned, i wouldn't say necessarily worried. i do respect and agree with what murph is saying, if we can get a number north of 50, keep in mind the quarter prior 2011 they did 6.7 million. if you extrapolate these numbers, you got a good shot to get to 50 million. if you get that, i think the street has really taken apple ownership from that overweight stance and i think the race in the paint is really towards the up side to get back in again. >> are you guys accepting, pete, of the fact that margins are not going to be exactly as they were, especially when you hear talk of the iphone mini coming down the line? >> that's part what we have to accept. it's not just a fundamental story but that's the one fundamental i would point out. that is something people are focused on. you're still talking about a company, when you talk about the money they make, if you look at the at&t numbers, somewhere between 45 million and 50 million iphones. that's a heck of a number

in general, not necessarily apple versus samsung -- >> i don't think apple's alone here. samsung was down right defensive in their guidance if they gave any at all in terms of, they are pointing to seasonal weakness coming up. i think samsung is much better positioned. i think they have the barbell. they are high end, low end, and they dominant the low end. apple is six in china, samsung is number one. if you look at what's going on here, the trade is really to be short samsung. if you look at the pressure going on, this is what we started to put on last week. this is something that you can stay in, because this is a stock that at some point is going to have to catch up with the lofty expectations, as well. not expensive, will continue to grow. but a chart that looks broken right now and south korea is, i think, on the currency side, giving something back, because they are worried about the strength of their currency. that's another part of this trade. >> profit margins were declining for samsung and so is revenue growth which is very similar to what apple had. >> this is something t

, have they indeed joined samsung and nokia. samsung, of course, getting all the buzz, deservedly so for the galaxy family and nokia with the lumia family. they have really hit it hard. and they have justifiably enhanced shareholders of both those companies by the sales that they put up. now we've got rim's turn and i think there's really three key points here, the first one, melissa, i think, is price point. does the z 10 come out at a price point that people want to see? we've seen people famously miss that price point. apple did it with the e-mini, i pad, that is. and you could see these guys miss if they shoot too high. i think that's a big mistake. and of course the operating system, i know you had the bold at one point, melissa, the first touch screen that they came out with, that was not 100%. and obviously from what we've seen, that purports to be the z 10, it is, indeed, going to be pretty slick. in the operating system and the -- >> right. >> the pricepoint are right, then it's going to be good. if they're wrong, it's going to be bad. >> that berry, by the way, is now recyc

behind the iphone killer, samsung's chief product officer bringing his plans for the galaxy phone. dagen: a new court ruling on rfid tags at school and why your kids may have to wear them. connell: and more on this vicious flu outbreak is keeping both kids and their parents at home. dagen: don't look at me. i'm saying nothing. you should be appreciate the moment. connell: pretty much -- a lot of people have the flu, huh? that is a rare moment when you're quiet. dagen: do not come to work if you are that sick because i know you will wind up getting it. connell: that's how it spreads around. at the top of the hour we go to nicole petallides for stocks now and every 15 minutes. news on morgan stanley; right? nicole: right, let's take a look at morgan stanley. they are cutting 6% of their workforce. charlie gasparino was the first to report this, but they are going to do some job cuts. we're talking about 1600 jobs within institutional securities. more of the senior employees are probably the ones who will be looked at very closely. half in the u.s. half overseas. down 1/10 of 1%, $19

green there. >> speaking of strong earnings, good news for apple rival samsung. it beat expectations, bringing a record 6.6 billion euros in profit in the fourth quarter. >> the new numbers were largely thanks to sales of its property galaxy -- popular galaxy line of smartphone. samsung is powering ahead, managing to ship 63 million smartphones worldwide, putting it well ahead of apple's iphone. despite the record-breaking quarter, samsung expects sales to taper off in 2013. >> strikes have continued at dusseldorf and cologne airport, causing a second day of flight cancellations and heavy delays. >> long lines formed at check-in areas while around 170 flights have been canceled so far. on thursday, august 2 hundred flights were canceled here the trade union is demanding a pay raise for staff at the airports, but try as i said to continue into friday evening. >> back to my part of the world. if it is not drought, it is the rains and floods. and a trillion teenager and his rescue had a dramatic escape in queensland. >> the boy was found clinging to a tree. his rescuer got him back to t

. tickets can still be bought online with cards, but the service will be suspended january 15. samsung's on a roll. in 2013, it could very well widen its marketshare lead over apple. that's what some analysts predict. with its larger multi- tier product lineup, samsung expects to sell 290 million smartphones this year, 75 million more than last year. apple? it hopes to sell 180 million smartphones in 2013. samsun's edge in the market is 33% over apple's 21%. microsoft's windows 8 has not been winning fans, but the u.s. department of defense is on board. the d.o.d. signed a three-year licensing agreement with a microsoft reseller to bring windows 8 and other products to 75% of its staff. the deal is worth about $617 million, and saves the army about $70 million in i.t. costs. the department of defense is already a microsoft customer. well that didn't take long. no sooner did northeast republicans excoriate their brethern in congress for not passing a sandy storm relief bill than the house turned around and passed the bill. the near $10-billion measure was quickly passed in the house on fr

battle against samsung. for that we go to jackie deangelis at cnbc. good morning. >> good morning. all eyes on blackberry and rim. also hitting milestones. the muchs are higher after stocks resumed the march higher. investors shrugged off a report saying consumer confidence dropped this month. tech got help from amazon. quarterly earnings, missing forecasts. but the stock still jumping in after hours trading. we'll get data on private sector jobs and fourth quarter gdp. the dow a stone's throw away from 14,000. it hasn't hit the mark since 2007. we saw it rise 72 points yesterday to 13,954. the nasdaq slipping to 3153. a federal judge rejected apple's request to increase the $1 billion in damages a jury awarded them last year in the patent battle with samsung. the jury found samsung infringed on some but not all apple patents. the judge said the jury got it right and apple has not identified specific losses suffered as a result. she denied requests for a new trial from both companies. >> thank you very much. >> 4:46 now. rob is here to talk about the weather. you're talking about breez

korea's kospi added .4% helped by samsung electronics. australian shares rose for the 10th straight day. the longest rally since 2003. meanwhile, india's sensex is currently trading marginally in the green. ross, back to you. >> thank you. >>> jane foley is still with us. we want to ask about the australian dollar. this being one of the favorite currencies while china was growing and commodities were strong. what happens now? >> well, the australian dollar has been extremely resilient. this is counter to a lot of forecasts at the end of the year. they were, you know, china's weaker or the australian dollar is overvalued. australia has got to go down. the australian dollar has to go down. no, i mean, china data over the last month, two months, three months has improved -- doing better. perhaps they will cut rates bo there is a feeling that they still will next week. the resilience of the australian dollar comes back to the yield story. investors still want to buy yields. >> 104.37, down about .3 today. where do you see it midway through the year, 2013? >> i think it will hold between 104

to samsung, which apparently people want more of? >> no, i think with people, it is on the street and it is still selling well. oversees markets will do terrific. if anything, i think the comparison, worst case comparison is apple's the new microsoft, which is settling into a mature phase where they will be printing money but not thought of as cool as they were. nothing lasts forever. but there has to be things that apple has up its sleeve. it just does. >> with all due respect to my abell cohost, get it here -- john, settle this once and for all. mandy, i'm sorry, you like to talk about samsung, people want bigger screens and samsung is selling more than apple. so you assume samsung is bet are or more desirable. well, samsung is selling than apple because it is cheaper. more accessible to everybody. >> and in markets like asia. i will give you that. >> yeah. >> okay, show off. >> i think samsung is doing particularly well. how much of that is built on the success created and invented by the iphone, that another debate. >> peter, sorry, time is running out. peter, does apple have

much subsidy samsung gets versus how much apple gets. how much do they give up per $100? samsung only gets about $65 per $100. apple gets about $94 or $92 per $1,0100 $1 $100. that's huge. >> they say apple is going to get the benefit of the doubt unless it's a tremendous miss. do you buy that? >> so sure i am right now. i think fundamentals have never been any different. i think even at $700, fundamentally you could make the argument stock is cheap, they're sitting on all this cash. i think at $500, you are seeing a company that's technically has broken. that $550 level, that's where apple has to get back above. otherwise now it's technically broke. i'm looking at it right now. i like what they're doing. obviously what the verizon story tells us is the 4 and the 4s, those margins, if those are the devices they were selling the most of, the margins shouldn't be impacted that much. what are the margin levels now for apple, but i think you have to realize going forward as they get into the second half, if they come out with a cheaper iphone, that's going to be a great catalyst along wit

city's times square, i'm melissa lee. smartphone wars, as apple, google and samsung duke it out. your best bet. the ceo of broadcome with the latest from the consumer electronics show. plus, boeing's nightmare. more bad news for the dreamliner. why you should be buying this dip. and ticking time bomb. is student debt the next big threat? we're taking a look at the potential fallout. but first, let's get straight to our top story, and that is the unofficial kick off to earnings season. alcoa on the rise after posting stronger than expected revenues. the epos coming in in line. aluminum demand growth they are forecasting at 7% and sold it higher than expected average prices, which was a huge benefit here. guy, what do you think -- >> it was fine. i wouldn't say it's fantastic. i wouldn't say it's a disaster. i would say it's a typical alcoa, pretty boring. i don't think klaus said anything that staggering. the stock performance speaks that. you have to remember, if you go back four years, alcoa's been a dead stock, anywhere between eight bucks and 11 bucks over the last four years. mean

, directly assisted in more than 5,000 companies this past year. one of the companies was samsung semiconductor headquartered in korea. go biz persuaded samsung to locate their only research development in the world, the new facility in san jose will place up to 5,000 people in high skill high wage jobs. we also leveled the field on internet sales taxes with new jobs at amazon centers and patterson san bernardino and now tracy. this year, we should change both the enterprise zone program and the job hiring credit. they aren't working. we also need to rethink and streamline a regulatory procedure, and cut needless delays. [ applause ] california's export -- that gives the republicans something to cut. california's exports are booming and never stronger. it's deep. when the chinese immigrants crossed into the pacific in 1848 to the next president in los angeles last february. this year we'll take another step to strengthen the ties between the second and ninth largest economies. trade an investment mission to china with the council and open the trade and investment office in shangha

saying there is a lot of anticipation behind what samsung might unveil next week. that's perhaps weighing on shares of apple in today's trade. hoou are looking for bright spots, take a look at social media. facebook continuing its rise. goldman sackes with a bullish note saying it sees facebook as promising. one of its friends in the social media space, zinga, also mooufing higher. after confirming earlier this week it is shutting down operations of 11 games. freeing up administration on zinga cloud. where it could launch new games in 2013. lastly, a lot of movement ahead of the j.p. morgan health coence next week. which is referred to as the super bowl of healthcare. one of the mover and shakers is expected to be celgene. we are seeing stocks higher than next week. >> thank you seema, very much. >>> to the bond market. find out what traders make of the latest jobs report. not to mention the bullard comment at the top of "power lunch." rick santelli at nyse. hi, rick. >> we were close to 197 1/2. we closed last week at 170. it's been 22 basis point week and for a while over a qua

saw slow downs. no let up in the subsidies to apple and samsung, we love these companies because they had no europe last year, no china, no mexico. now we wish they had all three and there was business formation. let's focus on the other half of the equation. it's a little more robust, where the money is going. last night china had one more remarkable session. holy cow, courtesy of new attitude. the gold double digit growth is taking up the fxi. follow along, but it is taking up the ancillary chinese plays, like coach. did you see that today? rallying more than $2. we are seeing steady gains in cummins. totalling chinese demand, truck demand. this one won't stop climbing. i say watch starbucks which is a gigantic expansion going on in china. i think it's going terrifically. and that stock is taking a hit because of disassociation with the people's republic, it's coming back strong. nike was hurt by inventory in china but that's becoming a thing of the past and buyers are piling in. the worst is over for certain at least in china. how about winn? nonetheless, steve wynn has put a

price set last may. the trial that will never end -- apple versus samsung took another twist in san jose federal court when judge lucy koh said she would not increase the penalty against sam sung for copy right infringement. she said there is not enough evidence that samsung willingly infringed on apple design. when you look at the two companies' tablets side by side it is clear one company copied another. apple on the right, samsung on the left. the jury said this. there is a $1 billion fine but willful means you copied something pretty much with the knowledge that you would be caught, knowing it was illegal. had samsung been found guilty they would have paid $3 billion. john and laura? . sp interesting. >> absolutely. time to check in with rob. a lot of sunshine coming our way. >> up to the sierra. we have been watching the conditions. we'll start with the toyota snow report. brian hager joins us. a look at conditions on the slopes. good morning. >> good morning. conditions are great up here. we have plenty of sunshine. great groomers and things are looking good. another fine day

quarter for sales come into the 2013. we are getting bigger numbers from samsung, market share numbers are gaining for samsung, apple losing sales as far as the marketshare goes. doesn't that factor into what we hear from the component makers? >> it does and it doesn't. i haven't identified where the cuts are from. in quarter for apple did 50 million iphones. samsung did somewhere around 18 million galaxy, around 8 million note to mack. they did somewhere around 26 million so apple was approximately double samsung's true competitive area. apple does not compete at the low end or the mid-end, only the high-end. apples to apples comparison, apple is still twice the size. cheryl: one man's treasure is another man's trash. and in that kind of goes to apple and rim right now, a big jump in rim stocks given the component makers seeing a scale back from apple. does rim win? >> it is interesting. look at the universe of beaten down tech companies, hp, dell, nokia, that group has performed remarkably well in the last month. it has been stunning actually. we're seeing portfolio managers and hedge fu

in the world and then there's the samsung galaxy, it leads the iphone in sales and shows on its bottom line. in a three-month period, samsung forecast record profits of more than 8 billion dollars. meanwhile, a new cliff approaches faster than we thought. the government runs out of money on february 15th according to one think tank. so here we go again. a new countdown to disaster. deja vu all over again. "varney & company" is about to begin. what are you doing? nothing. are you stealing our daughter's school supplies and taking them to work? no, i was just looking for my stapr and my... this thing. i save money by using fedex ground and buy my own supplies. that's a great idea. i'm going to go... we got clnts in today. [ male announcer ] save on ground shipping at fedex office. # # >> >> apple may offer a low cost iphone in china the first half of this year from the tech publication digit times. however, the buzz at the consumer electronics show this year is all about samsung. charles payne is with me. i can invest in apple right now instantly. i can't do that with samsung. cha

i'll say this now the bb 10 being number one as you'll see when it comes out. samsung number two. i think you keep going you'll see people coming back to the blackberry particularly corporate america. >> unless they say buy, buy and hang up when the news comes and it is a sell on the news event. >> it won't be. the stock may be but buy there because it is going to go back up. it has a lot of cash. a good company. >> all right. intel the worst performing dow stock today after issuing a disappointing outlook. joe and dr. j. debated the stock yesterday and one of our traders thought he was the clear cut winner. let's take a listen. >> whatever apple ends up doing intel will steal the thunder. the stock is highly correlated with gross margins which continue to decline right now the street looking for 57%. they'll have to guide those margins even lower. >> judge did a great job as always but i go with the doc. >> no! >> i think intel -- >> time for a rematch, round two. why? because dr. j. you told me last night i want a rematch. >> that's right. i need a rematch because joe is kicking m

. >>> the bitter patent dispute between apple and samsung continues in a san jose courtroom. the two companies are fighting over trademark infidgegement claimses -- infringement claims. now apple wants an earlier ruling regarding the nexus smartphone in the u.s. they claim 19 of samsung's devices, including the galaxy and note products used apple patents. last august, a jury awarded apple $1 billion in damages. >>> target is going head to head with online retailers by turning its holiday price matching offer into a year- round promise. the nation's second largest discounter behind walmart announced today it will match prices -- on identical progress for stores like amazon.com. the list includes walmart, best buy, toys 'r' us and babies are us. the move follows disappointing holiday sales because of the online competition. >>> fisher-price is issuing a warning to parents about a possible mold problem for 800,000 newborn rock and play sleepers. that's after 600 reports of mold and treatment for 16 instants with respiratory reactions. parents should check for mold between the suit cushi

the judge to order samsung to pay more than $1 billion the jury already awarded. the judge did not address samsung's request to have it reduced. >>> in just a few hours we will see the newest blackberry phone analysts say the blackberry 10 could save its maker research in motion. previews say the software works well. the new phone reportedly also has the ability to keep personal and work identities separate on the same phone. the unvailing happens in new york at 7:00 our time. >>> wildlife workers are trying to solve a mystery in san francisco's mission district. earlier this month is a coyote was discovered in a backyard near cap and 18 streets. the animal was dehydrated, flee infested, and ten pounds under weight. they are trying to figure out how the coyote ended up there. one theory it hitched a ride in the engine department of a vehicle. >>> sal is on his way here. we want to update you on traffic this morning. take you out to highway 4 bay point. you can see already getting a little crowded. those people have a long commute. it is moving along just fine. i don't know of any b

rise of android & samsung. there are so many different android/samsung and some are cheaper or even free! and also the rise of the phablet this galaxy notebook is a huge screen with a stylist is a large phone/small-cap but. it is catching on an apple does not sell one. also, the iphone 4 is possibly hurting the iphone 5 cell. and some consumers are taking advantage of a free iphone for and did not purchasing a bit more expensive by phone 5. however, they have not reduced their water for componentry for the iphone 5. this could all be a rumor and perhaps there are just years and the motions. this will tell us exactly what happened over the holidays. and they will probably clear up this chatter about componentry. gabe slate tech report ahead at 8-30. a violent weekend in oakland. more than a dozen people shot in separate incidents around the city. how the police department plans on slowing down the accelerating violence. and the flu outbreak starting to reach crisis levels in parts of the u-s. how hospitals in the bay area are working to keep the region safe. >> jacqueline: it is goin